Bayer (BAYN) Q4 2025 (Media) earnings summary

Executive summary

• Achieved upgraded 2025 guidance with group sales of EUR 45.575 billion, core EPS of EUR 4.91, and free cash flow of EUR 2.084 billion.

• Dynamic Shared Ownership (DSO) model fully implemented, driving agility, cost reduction, and faster product launches.

• Litigation remains a major focus, with a nationwide glyphosate class settlement progressing and EUR 7.5 billion in litigation-related special items.

• Major leadership transition: Judith Hartmann to become CFO in June 2026.

• Net income was negative EUR 3.62 billion due to high special charges for litigations, notably Roundup™ settlements.

Financial highlights

• Group net sales grew 1.1% year-over-year (currency and portfolio-adjusted).

• Core EPS at EUR 4.91, down from prior year due to lower EBITDA and FX headwinds.

• Reported EPS at -EUR 3.68, mainly due to litigation provisions.

• Free cash flow at EUR 2.084 billion, upper end of guidance, but expected to turn negative in 2026 due to litigation payouts.

• Net financial debt reduced to EUR 29.843 billion by end of 2025.

Outlook and guidance

• 2026 net sales expected at EUR 45–47 billion, 0–3% growth at constant currencies.

• Core EPS for 2026 forecasted at EUR 4.30–4.80 (new methodology), stable year-over-year.

• Free cash flow outlook for 2026: -EUR 1.5 to -2.5 billion, reflecting EUR 5 billion in litigation payouts.

• Net financial debt projected to rise to EUR 32–33 billion in 2026.

• No comment yet on future dividend; decision pending year-end results.